Collecting rent in this area is downright dangerous.

As others have said, I would generally avoid HOAs completely unless you have the time to research each specific community.Your best best to is to buy a place in an up and coming area (read somewhat poor, but not dangerous) and plan to hold.

Out of state deals are fraught with danger and I always recommend restraint when doing so.

Unfortunately, this will almost certainly be a second-position loan and as dangerous as they come.

In addition to the flaws in the cash flow logic Twana Rasoul points out above, you also run into the danger of overpaying for your "turnkey" (turkey?)

(looks like Oakland is 3rd most dangerous city)3.

Holding one property for appreciation and losing money while owning a property for cash flow to offset can be very dangerous .

Probably not, otherwise you would not be cobbling together such a complex transaction.We specifically tell clients not to pursue this strategy of personal funds plus plan funds plus debt.The internet, or some other investor you may know, or even a sales rep at a self-directed retirement firm are not tax attorneys, and the fact that they might mention such a structure is worthless and dangerous.

It is not dangerous by any means but there is significantly more action there than in Folsom.  

Do not invest in any city on Neighborhood Scouts’ list of the 100 most dangerous US cities.Inflation compensating - Every time you go to the store, the same basket of goods costs more and more.